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RUTH Stock Alert: The $715 Million Reason Ruth’s Hospitality Group Is Up Today


  • Ruth’s Hospitality Group (RUTH) stock is climbing higher on acquisition news.
  • Darden Restaurants (DRI) is acquiring the company for $715 million.
  • The acquisition deal values RUTH stock at $21.50 per share.
RUTH Stock - RUTH Stock Alert: The $715 Million Reason Ruth’s Hospitality Group Is Up Today

Source: Jonathan Weiss / Shutterstock.com

Ruth’s Hospitality Group (NASDAQ:RUTH) stock is taking off on Wednesday following news that Darden Restaurants (NYSE:DRI) is acquiring the company.

Darden Restaurants will pay a total of $715 million to acquire Ruth’s Hospitality Group. The company will use cash for this acquisition, which values RUTH stock at $21.50 per share. That’s a 34% premium to the stock’s prior closing price.

Darden is expecting pre-tax synergies from the deal to range between $5 million and $10 million in the first year. That will then jump to between $15 million and $20 million in the second year. Darden also expects the deal to be about 10 cents to 12 cents accretive to its fiscal 2024 earnings.

The Boards of Directors at Ruth’s Hospitality Group and Darden Restaurants have given their unanimous support to the deal. If the customary closing conditions are met when expected, the deal should close in June.

Cheryl Henry, President, CEO and Chairperson of Ruth’s, said the following about the deal:

“We are excited about the opportunity to join the Darden family. Our strategy and operating philosophy aligns well with Darden, and we have a strong cultural fit that should ensure a smooth transition.”

RUTH Stock Movement Today

The acquisition news has RUTH stock seeing heavy trading today as investors buy shares. As a result, some 10 million units are on the move as of this writing. For the record, the company’s daily average trading volume is closer to 407,000 shares.

Today’s news and heavy trading have RUTH stock up 33.5% as of Wednesday morning.

Investors looking for more of the most recent stock market news will want to stick around!

We’ve got all of the latest stock market news traders need to know about on Wednesday! That includes why shares of ImmunoGen (NASDAQ:IMGN) stock is rising, investors betting on Icahn Enterprises (NASDAQ:IEP) and worries about Western Alliance (NYSE:WAL) stock. You can catch up on all of this at the links below!

More Wednesday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/ruth-stock-alert-the-715-million-reason-ruths-hospitality-group-is-up-today/.

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